McCormick Increases Sales but Misses Estimates on Earnings
McCormick (NYS: MKC) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q4), McCormick missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Gross margins contracted, operating margins contracted, net margins grew.
Revenue details
McCormick logged revenue of $1.15 billion. The 11 analysts polled by S&P Capital IQ expected to see a top line of $1.17 billion on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $1.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.11. The 13 earnings estimates compiled by S&P Capital IQ anticipated $1.14 per share. GAAP EPS of $1.11 for Q4 were 13% higher than the prior-year quarter's $0.98 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 42.1%, 100 basis points worse than the prior-year quarter. Operating margin was 17.5%, 40 basis points worse than the prior-year quarter. Net margin was 13.0%, 110 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $951.4 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $4.29 billion. The average EPS estimate is $3.33.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 393 members out of 409 rating the stock outperform, and 16 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give McCormick a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McCormick is hold, with an average price target of $64.33.
Can your portfolio provide you with enough income to last through retirement? You'll need more than McCormick. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
Add McCormick to My Watchlist.
The article McCormick Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Arctic Cat. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
